Carbon Sciences’ CO2 Technology Could Dramatically Change the Economics of the Natural Gas Industry

New research confirms that the company’s dry reforming technology can transform low value, high CO2 content natural gas into valuable products and reduce industry-wide CO2 emissions for all natural gas producers

Santa Barbara, CA - June 19, 2012 - Carbon Sciences, Inc. (CABN), the developer of a breakthrough technology to make transportation fuels, hydrogen and other valuable products from natural gas, today revealed that new research confirms that the company’s carbon dioxide (CO2) dry reforming catalyst technology can effectively use low value, high CO2 content natural gas. The company’s CO2 technology could dramatically change the economics of the natural gas industry by allowing for the commercial use of vast amounts of low value, high CO2 content natural gas to make valuable products, as well as reduce industry-wide CO2 emissions for all natural gas producers.

Most of the world’s natural gas reserves contain some amount of CO2. With current technology, natural gas is economically viable only when the CO2 content is less than 10-15% of the total volume. If the CO2 content is higher, then the removal process is prohibitively expensive, therefore leaving these natural gas reserves uneconomical to develop. To be marketable and pipeline ready, the CO2 content must be reduced at the wellhead to a content level of approximately 2.5%.

Unfortunately, most of the CO2 that is removed at the wellhead by the gas producers is simply released into the atmosphere. According to the U.S. Energy Information Agency, the production of natural gas is the second largest source of CO2 emissions in the country. The largest source of CO2 emissions is the actual combustion of coal, oil and natural gas at the point of use in energy and transportation applications.

These conditions create a dual economic challenge for the natural gas industry. First, how can resource holders monetize the vast amounts of high content CO2 found within the U.S., particularly in Texas, the Rocky Mountains and the Gulf Coast? Second, how can all resource holders, irrespective of the level of CO2 concentration in their gas, deal with the inevitable need to discontinue the practice of emitting CO2 during processing?

Carbon Sciences’ CO2 technology addresses these dual economic challenges. The company is commercializing its patented CO2 dry reforming catalyst technology that converts CO2 rich natural gas directly into synthesis gas (syngas). Syngas is an industry standard feedstock used to make many valuable products, such as hydrogen, fertilizers, methanol, plastics, as well as liquid fuels such as gasoline, diesel and jet fuel. By processing CO2 rich natural gas directly using its CO2 technology, Carbon Sciences’ management believes that certain natural gas producers can unlock the cash value of their high CO2 gas fields and that all natural gas producers can reduce their CO2 emissions.

Byron Elton, CEO of Carbon Sciences, commented, “Just like ‘fracking’ technology enabled low cost access to deep natural gas fields, which transformed the American energy landscape and economy for the better, we believe we can add significant value by enabling the cost-effective use of previously ignored high CO2 gas fields. We believe our technology has the potential to be transformational in a similar manner by turning low value, high CO2 natural gas into valuable products, as well as reducing CO2 emissions for the entire natural gas industry.”

Elton added, “With our ability to directly process high CO2 natural gas, we believe that the CO2 removed by the processing operations can be recycled into the production of syngas rather than emitting a harmful gas into the atmosphere. Not only is it more socially responsible to mitigate CO2, but it is also good business.”

About Carbon Sciences, Inc.

Innovating at the forefront of chemical engineering, Carbon Sciences is developing a breakthrough technology to make cleaner and greener transportation fuels, hydrogen and other valuable products from natural gas. Our highly scalable, clean-tech process will enable the world to reduce its dependence on petroleum by transforming abundant and affordable natural gas into gasoline, diesel and jet fuel, and other products, such as hydrogen, methanol, pharmaceuticals, solvents, fertilizers, pesticides and plastics. The key to this process is a breakthrough catalyst that can reduce the cost of reforming natural gas into synthetic gas (syngas), the most costly step in making products from natural gas.

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Date: Tuesday, June 19, 2012


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